New Breakthroughs in Liquid Cooling: High-Growth Concept Stocks Revealed

The concept of liquid cooling has attracted widespread attention.

Recently, Researcher Song Bai from the Department of Energy and Resource Engineering, School of Mechanics and Engineering Science, Peking University, innovatively proposed a 'manifold-microjet-serrated microchannel' composite embedded microfluidic structure. Using single-phase water as the cooling liquid, this structure has achieved ultra-high heat flux chip cooling of 3000W/cm², while reducing the cooling power consumption per unit area to 0.9W/cm² — which is equivalent to removing more than 3000 units of heat for every 1 unit of electricity consumed. This provides a crucial path for thermal management of next-generation high-performance chips.

This technology is manufactured using standard silicon-based MEMS (Micro-Electro-Mechanical Systems) processes and is compatible with existing integrated circuit production lines. Under the premise of considering industrialization potential, it has advanced the exploration of the ultimate heat dissipation capability of chip cooling technologies.

AI Drives the Development of Liquid Cooling Technology

Embedded liquid cooling integrates the liquid cooling system 'into' the chip or its package, rather than attaching a heat sink outside the chip as in traditional methods. It offers advantages such as reduced energy consumption, lower noise, and space savings.

The rapid development of AI technology has increased the demand for computing power, driving the rapid growth of the GPU market. However, heat dissipation has become the biggest challenge. For instance, the power consumption of a single chip based on NVIDIA's Blackwell architecture has exceeded 1200W, and the power density of a single cabinet for GB300 servers is as high as 120kW. Traditional air cooling solutions can no longer meet the heat dissipation needs of chips.

Against this backdrop, almost all chip and data center manufacturers have turned their attention to liquid cooling. For example, NVIDIA launched its liquid-cooled GPU — the A100 80GB PCIe — as early as 2022. Intel has also demonstrated an embedded liquid cooling prototype, which installs a copper microchannel cooling block directly on top of the CPU package, enabling a cooling power of up to 1000W.

Data centers are major energy consumers. By the end of 2023, the total electricity consumption of in-use data centers in China accounted for approximately 3% of the country's total social electricity consumption. To reduce the energy consumption of data centers, China has issued policies on multiple occasions to encourage enterprises to adopt new technologies, processes, and equipment. The 2023 'Implementation Opinions on Further Implementing the 'Eastern Data and Western Computing' Project and Accelerating the Construction of a National Integrated Computing Network' clearly states the need to promote energy-saving and carbon-reduction transformations of energy-consuming equipment in data centers, and popularize advanced heat dissipation technologies such as liquid cooling.

With the expansion of AI data centers, the liquid cooling market has also grown rapidly. According to a report by ZYPHU (Zhongyan Puhua Information Consulting Co., Ltd.), it is predicted that by 2030, liquid cooling systems equipped with AI algorithms will account for 60% of the market share, and their total lifecycle cost will be 22% lower than that of traditional solutions.

Liquid Cooling Concept Gains Institutional Attention

Liquid cooling is also a major hot concept in the A-share market. According to statistics from Data Treasure (a product of Securities Times), among more than 30 liquid cooling concept stocks in A-shares, 7 have seen their stock prices double within the year. The stock price of Siquan New Materials has risen by over 365%, and the company's liquid cooling products mainly include liquid cooling heat dissipation modules. The stock prices of related stocks such as Dayuan Pump Industry, Envicool, Feilong Co., Ltd., and Rongyi Precision have all doubled.

Since the second half of the year, a number of liquid cooling concept stocks have been surveyed by institutions. Among them, Feilong Co., Ltd., Emicon, Yinlun Co., Ltd., Lingyi Itech, Suzhou Tianmai, and Huafeng Aluminum have been surveyed by institutions multiple times.

Feilong Co., Ltd. stated that its products in the liquid cooling field have established a unique market position relying on first-mover advantages, customer advantages, and platform-based design. Currently, the company's products in the liquid cooling field mainly include electronic pumps and temperature control valves, and it will gradually expand to integrated module products in the future.

Emicon said that it has a full-stack liquid cooling solution, and its capabilities in four major sectors — intelligent engineering, key equipment, IoT software, and smart services — are fully in line with the needs of liquid cooling implementation.

Yinlun Co., Ltd. pointed out that liquid cooling is fundamentally dependent on thermal management, and the brazing process for thermal management is the company's strength. The biggest concern with liquid cooling CDU (Cooling Distribution Unit) is liquid leakage. The company's technology integrates the dozens of joints previously required into 2-3 joints, using automotive-grade technology to significantly reduce the probability of liquid leakage.

In terms of institutional attention, 15 liquid cooling concept stocks have been followed by 3 or more institutions. Yinlun Co., Ltd., Inspur Information, and Envicool have been 关注 ed by more than 20 institutions.

In the data center field, Envicool has provided a large number of energy-efficient refrigeration systems and products for large-scale data centers of users such as Tencent, Alibaba, and Chindata. A research report by TF Securities stated that the company is expected to benefit from the AI wave and the penetration trend of liquid cooling, and its net profit attributable to shareholders is expected to reach 1.08 billion yuan by 2027.

Among the above 15 stocks, 13 are expected by institutions to achieve a net profit growth rate of more than 20% in both 2025 and 2026. The net profit growth rates of Tech-Innov Co., Ltd., Gaolan Co., Ltd., and Feirongda are expected to exceed 100% in 2025. Tech-Innov Co., Ltd. mainly conducts data center heat dissipation structural parts business through Chuangyuan Zhire, with products including siphon-type special heat dissipation modules and liquid cooling plates.

Kres(Suzhou) Power Systems Technology Co., Ltd is an emerging company focused on fluid power solutions, and serve for the markets of Energy, Construction, Agriculture, Manufacturing, Transportation, Medical, Data Centers, etc., and was founded in 2022 with leading-edge engineering capabilities and innovative products to keep up with the changing customer needs. Including OCP standard UQD, UQDB, BMQC, manifold, EPDM hose and hose assemblies, FF9 full flow dual interlock quick disconnect coupling (a better replacement for FD83 series products), API heat transfer products, Gates EPDM hose and Wika products.

KRES FF9 connectors are specifically engineered for fluid transmission, electronic cooling, and data center liquid cooling applications, where full flow, fluid compatibility, and safety are of paramount importance. The FF9 series ball valve quick-disconnect couplings adopt a full-flow design and are now available in 2-inch, 1.5-inch, and the popular 1-inch sizes. The FF9 double interlock liquid cooling quick-change connector features a swivel structure at its tail, facilitating easy connection and disconnection. Additionally, its two connector halves are completely identical, simplifying maintenance, installation, and service processes.

· 100% full-flow interlock ball valve: The FF9 double interlock ball valve has a diameter of up to 21mm, ensuring large flow while reducing pressure drop, achieving large flow and low pressure drop, and has obtained SGS ROHS reports and Huace performance test reports.

· KRES interlock ball valve adopts a double interlock design with two locking mechanisms to prevent accidental disconnection and ensure data security.

· The FF9 liquid cooling quick-change ball valve has identical connector halves, making maintenance, installation, and service simple.

· As a liquid cooling quick-change ball valve for data centers, it has reliable and stable performance with minimal leakage, meeting the maintenance needs of safe machine relocation or shutdown.

· Standard body material of the liquid cooling quick-change connector: 304 stainless steel, with wide fluid compatibility, and other materials can be provided upon request.

· Standard sealing material of the liquid cooling quick-change connector: EPDM ethylene propylene diene monomer synthetic rubber, and other materials can be provided upon request.

· Operating temperature range of the liquid cooling-specific ball valve: -40℃ ~ 120℃